Staples, Inc. (SPLS) Stock Rises on Sale to Private Equity Firm for $6.9 Billion

The offer values SPLS stock at $10.25 per share

Staples, Inc. (NASDAQ:SPLS) stock was up on Thursday following news of a sale to private equity firm Sycamore Partners.

The deal will have Sycamore Partners acquiring Staples, Inc. for $10.25 per share in cash. This will have it paying a total of $6.9 billion for the provider of business services and products. The offer is a 20% premium to SPLS stock’s 10-day volume weighted average stock price ending on April 3, which was the last day before talk of the deal spread.

Staples, Inc.’s Board of Directors has put its unanimous support in favor the deal with Sycamore Partners. It is also advising that all holders of SPLS stock put their support behind the sale when the vote for investors begins.

Staples, Inc. says that it will need approval from its shareholders and regulators before it can complete the deal. Should everything go in its favor, SPLS estimates that the transaction will reach completion no later than December of this year.

Sycamore Partners is getting debt financing for the deal from UBS Investment Bank, BofA Merrill Lynch, Deutsche Bank, Credit Suisse, Royal Bank of Canada, Jefferies, Wells Fargo Bank, National Association and Fifth Third Bank. Financial advice is coming from BofA Merrill Lynch and Deutsche Bank Securities Inc., and Kirkland & Ellis LLP is its legal advisor.

Staples, Inc. is getting its financial advice for the deal with Sycamore Partners from Barclays and Morgan Stanley & Co. LLC. The retailer’s legal advisor in the transaction is Wilmer Hale LLP.

SPLS stock was up 1% as of noon Thursday and is up 11% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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